Austin homebuyers seem to be having a feeding frenzy. Inventory is very low and demand is very high. Because of job creation and quality of life, people are moving to Austin from all over the place. Many are fleeing states with high tax rates to move to Texas, where there is no state income tax.
Low Inventory in the Silicon Hills
There are fewer than 5,500 single-family homes on the market in the Austin area. That number is down around 1,500 from a year ago, when there were also fewer new home starts in and around Austin. That number is up this year as demand has rocketed up, but we still have fewer new homes than we did several years ago. Because of this, demand for resale homes has risen, and that has pushed prices up.
Austin’s Strong Home Sales
During the last 30 days Austin has seen almost 2,000 single-family homes sold, and many sold extremely quickly. Some examples:
- A four-bedroom, three-bathroom house built in 1969 in Northwest Hills sold the day it was listed and fetched over $451,000. That was $16,000 over list price.
- A single-story house with 1,650 square feet built in 1959 sold in one day for $27,500 over list price.
- I was talking with a fellow Private Label Realty agent last week, and she told me she had 18 offers on a new listing the first day she put it on the market!
Over the last 30 days homes in Austin sold at an average of just 48 days on the market. The average sold price was $317,426, or $129.8 per square foot. For the same time period a year ago these figures were $267,933 and $115.62, and homes averaged 69 days on the market before selling. Folks, these are big numbers. In addition to recent sales, Austin has 4,375 homes under contract at this time, and that is a huge number.
Austin’s Hottest Neighborhoods
In the south central Austin neighborhood of Cherry Creek there are just six homes on the market. There are currently 11 Cherry Creek homes under contract, and they averaged just nine days on the market. Of the five homes in this neighborhood that sold over the last 30 days, they averaged just three days on the market before selling. All sold for full price or above. This tells me that many must have gotten multiple offers, causing bidding wars among buyers.
In Circle C Ranch, a master-planned community in southwest Austin, there are 18 homes listed for sale and 26 under contract. During the last 30 days Circle C has seen 13 homes sold. They averaged just 13 days on market before selling, but this number was skewed by one home that took 81 days to sell. Most of these homes also sold for close to or over full price.
Austin’s Warming Luxury Home Market
The luxury home market in Austin isn’t exactly on fire, but it has seen a dramatic improvement compared to the last several years. There are currently 530 single-family homes on the market listed at $999,999 or above. The least expensive of these is in Cat Mountain, a northwest Austin neighborhood. This is a 4,064 square foot house listed for $1.1 million. The most expensive Austin luxury home for sale is a 15,394 square foot home on over 16 acres overlooking the main basin of Lake Travis. This one is listed for $15 million.
During the last 30 days 60 Austin luxury homes have been sold in and around Austin. The average sold price was almost $1.7 million with average days on the market at 109. Sold prices remained almost the same as a year ago. So why mention these less-than-stellar numbers? Just 29 luxury homes in Austin sold last year, and the average number of days on the market was 129. So even this part of the Austin market is coming back to life.
The point in writing this is to show prospective buyers in Austin that they need to be preapproved by a lender, work with a qualified buyer’s agent, and be ready to write an offer the minute they find the right house – and then be prepared for multiple offers.
This guest post was written by Sam Chapman, a real estate agent from Private Label Realty of Austin, Texas.